Biz Briefs

Jan 19, 07:23 AM

Sprint shares plummeted nearly 25 percent, prompting analysts to forecast even more cuts in the coming months as the nation's third- largest wireless carrier struggles to compete with AT&T Inc. and Verizon Wireless.

The layoff of about 6.7 percent of Sprint's work force and closure of 8 percent of its stores is to be completed in the first half of the year. Sprint said in a news release that the cuts will trim labor costs by $700 million to $800 million a year.

venture capital

Investments climb to $29.4B

SAN FRANCISCO | Venture capital investments in U.S. startups climbed to a six-year high of $29.4 billion in 2007, raising hopes that ample money will still be available to back promising new ideas even if the staggering economy falls into a recession.

The amount of venture capital spread across 3,813 deals represents the industry's busiest year since $40.6 billion went into nearly 4,500 U.S. startups in 2001, according to data scheduled for release today by Thomson Financial, PricewaterhouseCoopers and the National Venture Capital Association.

The $29.4 billion invested last year marked an 11 percent increase from $26.6 billion in 2006.

Although many experts say they think a recession is imminent, venture capitalists say there is little reason to believe their investment pace will slacken this year.

The investment areas spurring the optimistic outlook include health care and biotech; the Internet; and technology aimed at developing alternative energy, reducing pollution and promoting conservation.

FCC

Tests to send net over TV airwaves

WASHINGTON | Federal regulators said they will try again to test prototypes on Jan. 24 for transmitting high-speed Internet service over unused television airwaves.

Late Thursday, the Federal Communications Commission said the devices - developed by Adaptrum Inc., Microsoft Corp., Motorola Inc. and Philips Electronics North America Corp. - will be tested in laboratory and real-world conditions.

The agency said testing will take three months and issue a report about six weeks after the testing ends. If the tests are successful and the devices are approved, the coalition plans to introduce commercial devices for sale after the digital television transition in February 2009.

-From wire reports

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